BRIDGE FINANCE DOWNLOAD FUND

BRIDGE

PRODUCT

PRODUCT

PRODUCT DESCRIPTION

About four years ago we have established a London based finance company, through which we provide bridge finance loans to London based investors and business owners, secured with London real estate.

The loans range between £100,000 to £1,000,000 (average £350,000) for minimum 3 months and maximum 12 months periods (average 8 months) and we charge around 1% interest per calendar month.

The loans are secured against London real estate with a maximum 70 % for first charge residential (average 50%) loan to value. Valuations are produced by external independent chartered surveyors, from our panel and also by our internal property professionals based on comparable sale prices.

We carry out the due diligence and underwriting ourselves with our own lawyers and bankers being part of our team and provide the loans with our own funds.

Volumes have picked up and we currently lend out about 2 – 4 million per month.

Investors acquire existing loans from us; we charge the borrowers 10-12% and we may assign 6-8% to the investors (depending on LTV), retaining around a 4% margin and the loan administration till full redemption. Upon loan redemption the investor may decide to receive the funds or re-invest them by acquiring another loan receivable from our loan book at the time.

Therefore the investment is sterling denominated, the return is about 6-8%, with short investment periods between 3 – 12 months and the underlying risk being the London real estate market, with a 30% + safety cushion.

MAIN PRODUCT INDICATORS

RANGE OF RETURN 6%-8%
RANGE OF LOAN SIZE £100,000 - £1,000,000
AVERAGE LOAN SIZE £270,000
RANGE OF LOAN DURATION 3-12 months
AVERAGE LOAN DURATION 8 months
SECURITY First or second charge over residential and commercial property in UK (M25).
LTV 48%

FINANCIAL RELATIONSHIP AND LEGAL STRUCTURE

As you may know, in the UK if there is a loan default for non-primary residence loans then we can appoint a receiver without having to go through the court and get possession of the property. Then the receiver will sell the property through a real estate agent or an auction. The sale is fast since the London real estate market is very mature and liquid. The whole process takes between 3 – 6 months with all the principal, interest and relevant fees and costs covered from the sale proceeds. Only one of the loans we have rendered during the four years defaulted, with a subsequent successful settlement.

CLIENT PROTECTION

Investor protection is set out in the equitable assignment.
The investor has the right to the assigned amount (principle) and related rights (interest).
In case security is enforced, the assignee (investor) receives the assigned amount and related rights before payment of surplus to the borrower.

CONSULCO GROUP PROFILE

The group is in operation since 1993, and is one of the most successful and largest tax consultancy firms in the European and CIS markets for over 20 years. Consulco Limited 200 plus staff currently manage over 4.500 companies.
The group has expanded into UK based real estate since 2010, currently managing assets over STG £65 million, mostly group owned, and spread over commercial and residential properties as well bridge finance. The firm continues to be owner operated.

For more information please contact us at siteinfo@consulcocapital.com

LOAN PORTFOLIO
LOAN PORTFOLIO
PROCESS

PROCESS

© 2017 Consulco Capital. All rights reserved.
Designed & Developed by
Consulco Capital Limited, is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 166/12. Risk warning: Investing in financial instruments involves a high degree of risk and may not be suitable to all investors. Trading in financial instruments can result in both an increase or decrease in capital. Please refer to our Risk Disclosure available on our web site for further information.

DISCLAIMER

The information contained in this webpage is provided for general information only and does not constitute a recommendation, offer or invitation to make an investment, nor has it been prepared in connection with any such recommendation, offer or invitation, and is not directed to any person in any jurisdiction where the publication or availability of the information is prohibited. In preparing the information, we have not taken into account your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. Any examples shown may be purely hypothetical and have been included for demonstrational purposes only.

The performance, or any particular repayment of capital is not guaranteed. Past performance is not a reliable indicator of future results. Returns linked to currencies may increase or decrease as a result of currency fluctuations. Tax treatments depend on the individual circumstances and may be subject to change in the future.

Phone details

Nicosia, Cyprus
73 Metochiou Str., Engomi 2407, Cyprus

Tel.: + 357 22 361300
Fax: + 357 22 752597

 

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